Herbert Hoover

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Herbert Hoover

Herbert Hoover held the view that excessive intervention by the federal government would result in distortion of the basic tenets of American capitalism and the values central to individualism. He was opposed to the provision of direct support or aid to individuals by the government. Hoover noted that for government to resolve the great depression, certain actions were to be undertaken. He was of the view that the government should enhance its support to financing entities such as Reconstruction Finance Corporation that provided funding to banks for various infrastructure projects in the country. This would in turn prevent worsening of the depression. The government should release gold valued in excess of $750 million to increase money supply and in turn jumpstart the economy. In addition, additional investments were mandatory to enhance movement of goods and provision of services by the Emergency Relief Construction Act (Rosen 37).

He noted that individualism was integral if the Great Depression was to be solved given that individual contributions would develop solutions for the entire economy. The Federal Home Loan Bank was established with an aim creating various Loan and Savings institutions that would provide funding to individuals for homeownership. Franklin D. Roosevelt defeated Hoover given that the economy and the Great Depression were integral issues in the election. It is noted that Roosevelt’s “New Deal” provided direct federal aid and enhanced the levels of government control in a majority of industries and other deficit expenditures with an aim of inducing consumer activities and reviving the economy (Rosen 43).

Roosevelt was able to undertake projects such as the Federal Emergency Relief Administration, which provided support to poor and unemployed individuals in aspects such as housing, food, healthcare, and social services. Despite a majority of the programs being termed as unconstitutional by the United States Supreme Court, they were highly effective in illustrating and affirming the role of the federal government as the sole player of social welfare for the public. In addition, other legislations such as Works Progress Administration enacted in 1935; The National Housing Act enacted in 1937; National Labor Relations Act enacted in 1933; Securities and Exchange Commission enacted in 1934; National Industrial Recovery Act enacted in 1933, were all highly effective in halting the great depression (Houck 46).

They also played a role in restoration of investor and consumer confidence in the government and more so the American economic system. For instance, the Securities and Exchange Commission enacted in 1934 regulated the financial markets and enhanced the regulatory roles of the government in the securities exchange to enhance investor confidence. In addition, the National Housing Act enacted in 1937 provided enhanced access to quality housing for the public by providing effective and cheap loans to the public (Houck 53).

Works Cited

Houck, Davis W. Rhetoric As Currency: Hoover, Roosevelt, and the Great Depression. College Station: Texas A & M University Press, 2007. Print.

Rosen, Elliot A. Roosevelt, the Great Depression, and the Economics of Recovery. Charlottesville, Va: University of Virginia Press, 2005. Print.